IPCA LABORATORIES LTD Fair Value
IPCALAB · Healthcare · Current price ₹1,986.5
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹337 | 16% ROE fading to 12% over ~3 yrs, on ₹318 book |
| Relative P/E | ₹1,719 | EPS × 38.2 peer-median P/E |
| Graham floor | ₹567 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹1,944 | Street consensus 12-month target price |
Is IPCA LABORATORIES LTD undervalued?
DocStoX estimates the fair value of IPCA LABORATORIES LTD at ₹974 per share, versus the current market price of ₹1,987. That puts the stock about -51.0% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹337), Relative P/E (₹1,719), Graham floor (₹567), Analyst target (₹1,944). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹337 (bear) to ₹974 (base) to ₹1,944 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on IPCA LABORATORIES LTD
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.